Emergency Board No. 233 Submits its Findings
With Respect to the Dispute between American Airlines and its Pilots

The Presidential Emergency Board created by President Clinton on
February 15, 1997 in response to the strike by the pilots at American
Airlines, submitted its report to President Clinton today. The Board
recommended three pay scale increases totaling 6.5% from 1997 through
2000 and stock options to resolve a long-running contract dispute between
American Airlines and its pilots represented by the Allied Pilots
Association. While not recommending that regional jets operated by AMR,
American Airlines parent company, be flown by American's pilots, the
Emergency Board recommended additional restrictions or "wraps" on AMR's
use of the regional jets to enhance the job security of American's
pilots. The Emergency Board also recommended gradual elimination of the
"B" Scale, a lower pay scale for new hire pilots.

Although not legally binding on the parties, President Clinton
expressed his hope that the Emergency Board's recommendations will assist
the parties in reaching a negotiated settlement. President Clinton has
been advised that the parties are continuing to negotiate and he
encourages them to do so. "The best resolution is a negotiated
settlement acceptable to both sides of this dispute," President Clinton
said.

If no settlement is reached by 12:01 a.m. EDT on April 28, 1997, the
pilots are free to strike and American is free to lock out its pilots or
change their terms or conditions of employment.

The three member Emergency Board was appointed pursuant to the
Railway Labor Act. It is chaired by arbitrator Robert O. Harris, with
arbitrators Anthony V. Sinicropi, and Helen M. Witt serving as members of
the Board.

Copies of the Report may be obtained at the office of the National
Mediation Board. (202) 523-5920.